Does Cyber Insurance Cover Cloud or AWS Outages?

When a cloud provider or hosted platform becomes unavailable, your business may lose access even though your own network was not attacked. Chubb describes contingent business interruption for interruption of outsourced technology-provider systems under its product; other policies may define dependent systems, providers, and triggers differently. FTC guidance also tells buyers to consider attacks on data held by vendors, which does not guarantee coverage for every vendor outage.

Check whether the vendor is an insured dependent system, whether outages caused by cyberattack and non-malicious failure are both included, and whether the provider must meet a specified security standard. Review waiting periods, restoration periods, sublimits, aggregation clauses for widespread events, and proof-of-loss requirements. If AWS or another named service is critical, ask the insurer to identify the precise quoted wording that applies.